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change in corporate ownership

nytcpa2012
Level 3

Have a client who just sold their S corporation (stock sale); Bank needs "IRS confirmation letter" to change signature cards [new owner is keeping same Fed ID#] as well as a "Certificate in Good Standing".  Where/how do we get these documents? 

 

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4 Replies 4
sjrcpa
Level 15

Certificate of good standing comes from the state where they incorporated.

IRS confirmation letter for what?  Sale of S Corp stock isn't separately reportable to IRS. 


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nytcpa2012
Level 3

I don't know what the IRS Confirmation Letter refers to. this is from a list of things needed that the bank sent to my client.  It says "required for all new entities and new owners"  I have the S election letter but it is over 20 years old, so I don't think that's what they are talking about.

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qbteachmt
Level 15

Your client likely presented this incorrectly to the Bank; it's not a New Entity. They would likely accept a copy of the minutes and agreed on resolution for new officers.

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nytcpa2012
Level 3

I hope the  bank was wrong.  We will be providing the 20+year S corp approval letter from the IRS as well as minutes from both old and new owners' meetings to accept the offer and to codify the purchase.